Central Government clears rumours on minimum monthly wages


No amount has been fixed as the national minimum monthly wage. 

The Central Government has cleared the rumours on national minimum monthly wages under the Code on Wages Bill. The Labour Ministry made it clear that the Central Government has not fixed Rs 18,000 as the national minimum monthly wage.

The Code on Wages Bill 2017 was introduced in August, 2017. The Bill will absorb the Minimum Wages Act, 1948, the Payment of Wages Act, 1936, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976.

The Labour Ministry has issued a statement, which reads “Recently, some news reports have been published regarding the fixation of the minimum wage at Rs 18,000 per month by the Central Government. It is clarified that the Central Government has not fixed or mentioned any amount as national minimum wage in the Code on Wages Bill, 2017.”

Further, the statement read that “The minimum wages will vary from place to place, depending on the skill required, arduousness of the work assigned and geographical location”.

It was also made clear that the Central Government can seek advice of the Central Advisory Board, which has employers and employees in its board, before fixing the national minimum wage.

Earlier, the Central Government had decided to rationalise the 38 Labour Acts by framing them in four labour codes, including Code on Wages, Code on Industrial Relations, Code on Social Security and Code on Occupational Safety, Health and Working Conditions.

This codification will remove the multiplicity of definitions and authorities. Also, there will be easy compliance without compromising on the wages and security of workers.

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